"We lowered the price for iPhone 4 and iPhone 4S, and in the December quarter, we didn't have enough supply of iPhone 4, so it surprised us as to the level of demand we had for it," Apple's head honcho is quoted as saying.

During the talk Cook gave little away however, offering, "Our North Star is a great product. When everyone comes to work every day, they're thinking about that front and centre. We wouldn't do anything we wouldn't consider a great product.

Cook also reportedly commented that when Apple tried to make a cheaper Mac, it wound up making the iPad instead. So you never know, perhaps we'll see the company crafting something completely new for the budget-conscious crowd -- maybe that rumoured wristwatch?

What does Apple need to do next? Let me know in the comments, or on our Facebook wall.

About the author

Luke Westaway is a senior editor at CNET and writer/ presenter of Adventures in Tech, a thrilling gadget show produced in our London office. Luke's focus is on keeping you in the loop with a mix of video, features, expert opinion and analysis.
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